Mitsubishi Motors has negotiated a $4bn (£2.17bn) rescue package with Japanese and US investors, following the decision by DaimlerChrysler not to invest more turnaround money.

CEO Yoichiro Okazaki, in announcing higher than forecast annual net losses of $1.9bn (£1.03bn), says it is the comp-any's “last chance to survive as an auto maker”. The losses were attributed in part to defaults on subsidised vehicle finance sales in the USA, and recalls by the Fuso truck division. Europe was a bright spot, however.

“We were profitable in Europe for the first time this year,” says a spokesperson. “Within that, the UK is the most profitable.”